Are You Expecting This from Federal-Mogul?

Federal-Mogul (Nasdaq: FDML  ) is expected to report Q4 earnings on Feb. 27. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Federal-Mogul's revenues will compress -6.3% and EPS will wither -86.3%.

The average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.07.

Revenue details
Last quarter, Federal-Mogul tallied revenue of $1.60 billion. GAAP reported sales were 7.5% lower than the prior-year quarter's $1.73 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.06. GAAP EPS were -$0.11 for Q3 compared to $0.34 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 13.2%, 200 basis points worse than the prior-year quarter. Operating margin was 1.5%, 310 basis points worse than the prior-year quarter. Net margin was -0.7%, 270 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.66 billion. The average EPS estimate is $0.85.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 66 rating the stock outperform, and 23 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Federal-Mogul a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Federal-Mogul is outperform, with an average price target of $12.00.

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